Money SA economy
The JSE lifted off by 400 points on Thursday after receiving a healthy tailwind from more appetising local and international economic data.
By 5pm local time the JSE all share index had lifted 1.52%, with resources leading the charge via a gain of 2.19%. Gold counters rose 1.68%, but platinum stocks were all the rage as they gained 3.69%. Banks gained 1.36% and financials 1.06%, while industrials collected 1.13%. Gold was quoted at $1,239.22 a troy ounce from $1,238.45/oz at the JSE's previous close, while platinum was at $1,531.50/oz from $1,513.o0/oz before.
Kevin Algeo, portfolio manager at Imara SP Reid, said it has been a strong day for local stocks after they opened up by a marginal 100 points.
"It's been a broad rally across the sectors on the back of some better than expected jobless claims in the US. As a result, the rand has strengthened. Local data has also contributed. PPI came out better than expected and the market continues to speculate that a rate cut in September is increasingly likely."
The local market bounced from its Wednesday's oversold position, with platinum shares benefiting the most.
"PPI, CPI and GDP suggest that the market expects a rate cut in September," said Algeo.
South Africa's producer price index (PPI) registered growth of 7.7% year-on-year (y/y) in July compared with9.4% y/y in June, Statistics South Africa (Stats SA) data on Thursday showed.
Dow Jones Newswires reports that U.S. stocks bounced around in jumpy trading, but clung to modest gains Thursday as a drop in jobless claims took some of the edge off concerns over a slowing U.S. economic recovery.
On the JSE, Anglo American climbed R7.23, or 2.84%, to R262.25, while BHP Billiton added R4.28, or 2.13%, to R204.78. But Sasol only gained 97 cents to R278.02.
